Home Case Index All Cases Service Tax Service Tax + AAR Service Tax - 2016 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 145 - AAR - Service TaxTaxability of club membership fee – scope of the term service u/s 65(44) - is money / contribution received in form of shares and contribution is taxable as service as per the provisions of the Finance Act, 1994? - Held that: - provision of “service” by one person (service provider) to another person (service receiver) for the purpose of Section 65B (44) of the Finance Act, 1994 read with Sections 66B, 66D and Section 66E of the Finance Act, 1994 and accordingly, the Membership fee, Annual fee and other charges received from members from time to time liable for Service Tax. Explanation 3 (a) to said Section states that for the purposes of this chapter, an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons. The money/contribution received by company against shares from the prospective members for raising funds which can be used for achieving the sole object of the company i.e. establishing a luxurious club, is taxable as service as per the provisions of the Finance Act, 1994 - However, refundable security deposit should not be subjected to Service Tax as per provisions of the Finance Act, 1994.
|